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I was on stage this weekend at the Slovak Startup Awards and was asked a question
I've heard many times. A founder asked whether they should use an
advisor to help raise their first round of external money and if
so, whom? My fellow panel member answered positively,
recommending advisors and specifically if trying to raise money
internationally. Then I chimed in and said "Hell No!"

You should NEVER use an external advisor to raise money. The
reason is that most of them suck! Sure, there are exceptions to
the rule and I do know of a few guys who actually do have the
connections and can help you navigate VC waters. Yet, there are
so few that the chance of you finding someone worth using is less
than your chances of actually raising a round on your own. Even
worse, most guys who are really good at it do it for a while and
then move on. Hence not only are they hard to find, they
disappear quickly.

Why do I think most advisors suck? Well, they are no better than
you. Let's be honest with ourselves....if an advisor is so good
and well networked, why isn't he a VC or an entrepreneur or
whatever else is far sexier than being an advisor. It's not a
field you can get really passionate about. If you can work
wonders getting money raised for everyone, a VC will get you on
board as a partner. The reality behind most advisors is that
they've already lost their jobs at the top tier or never managed
to break into the jobs they wanted or raised that fund they
longed for. Advisory is the side gig. Would you really put your
fundraising fate in someone who's treading water?

Another problem with advisors is that they don't build the
relationship necessary when raising money. You may find dumb
money with them but you won't build that relationship that is
necessary to find the VC that will get into bed with you. It's a
long-term play when raising money and putting the advisor in as
middleman is doomed from the start, even if you do raise some
cash.

Further, most advisors are annoying. As a VC you get
hounded by them all the time. Most VC's who are worth it won't
spend any time listening to them nor take their calls. This is
just a fact. VC's want to find you to take you to bed and not
speak first to your pimp (see this post). Likewise, you want that
sugar daddy who'll also love you and not just see you as an
accessory or decoration.

And finally, it just doesn't make sense to take the money off the
table. By paying an advisor a percentage of whatever you raise,
you're taking money (from the VC) off the table. You see, you
aren't really paying that fee, the VC is. Why in the world would
I want my money as a VC going to an advisor who after the round
does nothing with this money to increase value of my investment.
It's just dumb all around.

Fundraising is hell but you have to do it. If you already have a
VC or angel on board, they should be helping you. (Remember, you
didn't raise dumb money, right?) Ultimately though it's you who
has to go out and sell yourself, your co-founders and your idea.
Put in the effort and don't be distracted by potential
shortcuts.